In Year 1, the company produced and sold 40,000 units of its only product; in Year 2, the company again sold 40,000 units, but increased production to 50,000 units. The company's variable production cost is $5 per unit and its fixed manufacturing overhead cost is $600,000 a year. Fixed manufacturing overhead costs are applied to the product on the basis of each year's unit production (ie., a new fixed manufacturing overhead rate is computed each year). Variable selling and administrative expenses are $2 per unit sold. Required: Compute the unit product cost for each year under absorption costing and under variable costing. b.Prepare a contribution format income statement for each year using variable costing. c.Reconcile the variable costing and absorption costing income figures for each year. d.Explain why the net operating income for Year 2 under absorption costing was higher than the net operating income for Year 1, although the same number of units were sold in each year. 4) Zable Corporation has two divisions: Town Division and Country Division. The following report is for the most recent operating period: Town Division Country Division $ 235,000 $ 192,000 $103,400 $ 105,600 $ 80,000 $ 58,000 Sales Variable expenses Traceable fixed expenses The company's common fixed expenses total $68,320. Required:a. What is the Town Division's break-even in sales dollars? b. What is the Country Division's break-even in sales dollars? c. What is the company's overall break-even in sales dollars? 5) Koff Corporation has two divisions: Garden Division and Farm Division. The following report is for the most recent operating period: Version 1 3 Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Total Company $ 265,000 105,390 159,610 Garden Division 5 163,000 63,570 99,430 Farm Division $ 102,000 41,820 60,180 110,000 68,000 42,000 49,610 31.800 $ 31,430 $ 18,180 Net operating income $ 17,810 Required:a. What is the Garden Division's break-even in sales dollars? b. What is the Farm Division's break-even in sales dollars? c. What is the company's overall break-even in sales dollars? d. What would be the company's overall net operating income if the company operated at its two division's break-even points